Update: Squatter’s Rights

With the viral video of an illegal or otherwise undocumented alien airing a TikTok this past spring, the pushback has been strong. In some states, legislation was augmented either addressing adverse possessions or specifically targeted as 'anti-squatter.'

With US Senator John Fetterman (D-PA), a former mayor himself, weighing in about squatters not having rights to housing, a careful but bipartisan legislative push grew.

While some of the changes were in the police and judicial realms, even those were definitively anti-squatter. So that while there isn't a single, clear definition of 'anti-squatting' laws across the United States, there is a growing trend of states passing legislation that makes it easier for property owners to evict squatters.

Two key areas of concern being addressed.

Expedited Eviction Processes: Some states are passing laws that streamline the eviction process for squatters. This might involve reducing the time needed for court proceedings or allowing law enforcement to remove squatters without a court order under certain circumstances.

Criminalization of Squatting: A few states are making squatting a crime, which could lead to arrest and prosecution.

It's important to note that most states have existing laws on adverse possession. These laws allow squatters to gain ownership of a property under specific conditions like occupying it for an extended period of time (usually several years) and meeting certain requirements. Tightening those regulations also helps.

Redefining service and requiring proof of written leases between the authentic property owner and the tenant has also been a growing concern. This latter issue has been a growing problem due to fraud over the past 15 years. Itinerant criminal bands move through areas with the trick of 'leasing' one rental unit to up to a dozen people, taking their deposits and first month’s rent checks before absconding with the money. The ersatz renters show up ready to move in, only to realize they have been duped and the owner is often left stuck with a short-term mess.

While Tennessee recently joined the ranks of Florida, Louisiana, Georgia, Alabama, West Virginia, and most recently Tennessee, there are several other states working on their own legislation. We have been following this issue closely online at RealEstateInvestingToday.com.

Here are summaries of the approved bills from these states and/or their last actions:

Florida: This bill enhances the protections for property owners against unauthorized occupants of residential properties. It enables property owners or their authorized agents to request immediate removal of unauthorized occupants from a residential dwelling under specified conditions. This includes unauthorized occupants who have
unlawfully entered and continue to reside on the property. The sheriff is authorized to serve these notices, and can charge a reasonable hourly rate for their services.

The bill also criminalizes intentional damage to a residential dwelling by trespassers who cause damages exceeding $1,000. Furthermore, the act provides criminal penalties for those who knowingly and willfully present a false document, such as a lease agreement or deed, purporting to convey real property rights.

The bill even prohibits listing or advertising for sale, or renting or leasing, residential real property when the person doing so knows they have no lawful ownership or leasehold interest in the property. Any acts in violation of these provisions result in respective penalties. The intended effect of this bill is to secure the rights of property owners and deter unlawful property occupation or presentation of false property rights. The new law took effect July 1, 2024.

Louisiana: This bill amends the Louisiana law on simple burglary. It expands the definition of simple burglary to include the unauthorized entry of any dwelling or structure with the intent to temporarily or permanently deprive the owner, lessee, or tenant of the full use of the property or to assert any right of ownership or use over the
property. Additionally, it imposes liability for any damage that results from this type of unauthorized entry. The bill also provides a new title for this legislation, The Louisiana Squatter Prevention Act. The new law takes effect on August 1, 2024

Georgia: This bill, known as the Georgia Squatter Reform Act, amends various sections of the Official Code of Georgia to address unlawful squatting violations. The Act defines unlawful squatting as when an individual resides on another person's land or premises without their knowledge or permission. Violators will receive a citation, giving them three business days to present proof such as a lease or rental agreement confirming their authorization to be on the premises. If they cannot provide such proof, they are subject to arrest and could face misdemeanor charges.

The bill also extends the jurisdiction of magistrates to include these violations and modifies procedures against intruders. The reform provides a streamlined process for ejecting squatters, including a submission of property affidavit, setting a time frame for eviction, and provisions for the use of monetary relief. The bill appeals all conflicting laws and was signed into law at the end of April 2024.

Alabama: This bill, introduced in the Alabama state legislature, outlines comprehensive measures meant to protect the ownership rights of property owners and combat the issue of squatting, or unauthorized entry and remaining in a dwelling. The bill elaborates on the existing definition of burglary and perjury by including conditions explicitly related to squatting.

It also introduces a new criminal act termed fraudulent sale or lease of residential real property.

Furthermore, this bill allows property owners or their agents to request the removal of unauthorized individuals from the property by submitting a sworn affidavit to a law enforcement agency. The process followed by law enforcement agencies to verify ownership and serve eviction notices is detailed, as are the legal repercussions for providing false information in the affidavit.

Additionally, the bill defines the term 'squatter' and stipulates that their occupancy does not warrant an eviction process. The law took effect June 1, 2024.

West Virginia: This bill amends the Code of West Virginia to address the issue of squatting. Squatting is defined as the unlawful occupation of a property without the consent of the owner or tenant. The bill clarifies that squatters are not considered tenants and thus, do not enjoy any legal protections or rights that tenants typically have. The legislation makes squatting synonymous with trespassing, a criminal act.

The bill further stipulates that courts in the state should not require property owners to use eviction or similar procedures to remove squatters. Instead, the appropriate response to squatting, according to this bill, is arrest for trespass. The bill was still pending at the time of this publication.

Tennessee: This bill removes ambiguous language and clarifies that a transfer of a possibility of reverter or right of entry by a holder other than the original grantor is invalid unless the validity of the future interest was determined by a final judgment in a judicial proceeding or by a settlement among interested parties prior to July 1, 2015.

The bill also adds a new section to Tennessee Code Annotated, Title 29, Chapter 18, which provides a limited alternative remedy for property owners to quickly remove unauthorized persons from residential real property under certain conditions, such as the property not being open to the public and the unauthorized person not being a current or former tenant or an immediate family member of the property owner. The law took effect July 1, 2024.

Around the US: Presently, at least five more states are considering anti-squatter specific language, including Ohio, New Jersey, New York, Pennsylvania, and South Carolina. These bills are all new but are similarly focused to an Oklahoma bill addressing this issue raised over the past several years, and introduced by Rep. Ross Ford.

The wave of anti-squatter efforts is also catalyzing anti-eviction advocates to claim that the squatter crisis is a myth, citing a lack of data, claiming this is an anti-renter issue and that renters need better eviction protection. However, even a cursory reading of the bills reflects a clear delineation by legislators between the protected lease-relationship of a renter and housing provider and contrasts that very clearly with the illegal, unwanted and unwarranted occupation of property. Even clarifying the distinction between a trespasser (squatter) and a holdover tenant who has stayed beyond their lessor rights, thereby deserving of the legal due process referred to as eviction.

As the rules for adverse possession and methodologies to cure range greatly by state, make sure that you are working with a knowledgeable real estate attorney familiar with the process – a mistake could end up being a very expensive problem!

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